Question

On January 1, 2022, Sunland Company had Accounts Receivable of $54,800 and Allowance for Doubtful Accounts of $3,800. Sunland Company prepares financial statements annually. During the year, the following selected transactions occurred: Sold $4,700 of merchandise to Rian Company, terms n/30. Jan. 5 Accepted a $4,700, 4-month, 9% promissory note from Rian Company for balance due. Feb. 2 Sold $10,140 of merchandise to Cato Company and accepted Cato's $10,140, 2-month, 10% note for the balance due. 12 Sold $5,300 of merchandise to Malcolm Co., terms n/10. 26 Accepted a $5,300, 3-month, 8% note from Malcolm Co. for balance due. Apr. 5 12 Collected Cato Company note in full. Collected Rian Company note in full June 2 Sold $1,800 of merchandise to Gerri Inc. and accepted a $1,800, 6-month, 11% note for the amount due. 15 Journalize the transactions. (Omit cost of goods sold entries.) (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.) Account Titles and Explanation Debit Credit Date

Answer 1

Jan 5	Accounts Receivable-Rian Company	4700
	Sales Revenue		4700
Feb 2	Notes Receivable-Rian Company	4700
	Accounts Receivable-Rian Company		4700
Feb 12	Notes Receivable-Cato Company	10140
	Sales Revenue		10140
Feb 26	Accounts Receivable -Malcolm Co.	5300
	Sales Revenue		5300
Apr 5	Notes Receivable-Malcolm Co.	5300
	Accounts Receivable-Malcolm Co.		5300
Apr 12	Cash	10309
	Notes Receivable-Cato Company		10140
	Interest Revenue		169	=10140*10%*2/12
June 2	Cash	4841
	Notes Receivable-Rian Company		4700
	Interest Revenue		141	=4700*9%*4/12
June 15	Notes Receivable-Gerri Inc.	1800
	Sales Revenue		1800